EUR/GBP upside met tough resistance at 0.8900
|- EUR/GBP comes down after testing the 0.8900 handle.
- UK PM Theresa May will step down on Friday.
- Brexit uncertainty remains unabated.
After testing fresh 5-month tops in the 0.8900 neighbourhood on Tuesday, EUR/GBP sparked a correction lower to the current 0.8870/65 band.
EUR/GB focused on Brexit, government
Despite Tuesday’s negative price action, the European cross keeps the 5-week positive streak unabated so far this week, always bolstered by the renewed and strong pick up in the buying interest around the shared currency.
On the GBP-side, the ongoing rebound in the Sterling is more linked to USD-weakness than anything else, while the domestic front remains dominated by rising uncertainty over the potential successor of Theresa May at Downing St, stalled Brexit negotiations and rising bets on a ‘no deal’ scenario.
In the data space, German and EMU final services PMIs surprised to the upside, while Producer Prices came in below expectations in May. In the UK docker, the always-relevant services PMI improved a tad to 51.0 during last month, surpassing estimates.
EUR/GBP key levels
The cross is gaining 0.12% at 0.8871 and a break above 0.8902 (monthly high Jun.4) would expose 0.9062 (low Jan.11) and finally 0.9092 (2019 high Jan.3). On the flip side, the next down barrier aligns at 0.8782 (200-day SMA) seconded by 0.8724 (low May 21) and then 0.8665 (55-day SMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.